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Posted By: CoreyRS.hanus

As I see it:

Legal - A group of individuals band together to bid seriously on a lot. None of the members on their own could afford the lot. This scenario would be a win/win/win for all involved. The auction house and consigner would get serious bidding they otherwise would not get had the group not formed; and the members of the group would have a chance to share in a lot they otherwise would not be able to afford.

Illegal - A group of individuals, any one of which has the means and willingness to on his/her own bid seriously on a lot. Here, while the individual group members could benefit because they would avoid going head-to-head with their competition, the auction house and consigner would lose because formation of the group would lessen the competitive bidding for the lot.